Data collection is very useful and valuable to you when done right. We need to ensure the data isn't abused, but that doesn't mean data collection is bad when the data is used correctly.
The utility is well aware that power outages happen and make their customers mad. They want to solve them, but they also know cost matters and so that takes many ways to solve power outages out. Data used correctly from systems like this make power more reliable and it can be cost effective. By giving the utility access to this data they can better serve everybody.
Again, the key is that the data is used to serve everybody and not used for any of the abuses it can also be used for.